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Back to blog September 08, 2020 No Comments Author: Andy Jones

Private Equity Investments in Telemedicine, Telehealth & Virtual Healthcare

In recent years, many basic healthcare interactions have been moving to virtual health services – telehealth or remote video health services. The spread of the coronavirus has accelerated the trend.

Private equity firms early to invest in telehealth portfolio companies have benefited from the sudden and significant increased demand for telemedicine and related remote healthcare services.

Which private equity firms capitalized on this shift in momentum with more than one portfolio company in the virtual health space?

9 Private Equity Firms with Multiple Investments in Virtual Healthcare

  1. Council Capital (Nashville, TN)
  2. CRG (Houston, TX)
  3. Edison Partners (Princeton, NJ)
  4. Galen Partners (Stamford, CT)
  5. Health Velocity Capital (San Francisco, CA)
  6. Kayne Anderson Capital Advisors (Los Angeles, CA)
  7. Kinderhook Industries (New York, NY)
  8. Safeguard Scientifics (Radnor, PA)
  9. SV Health Investors (London, UK)

 

Below, we show sample virtual healthcare investments made by private equity firms in 2019 & 2020.

Sample Private Equity Investments in Telehealth Portfolio Companies

Doctor on Demand (San Francisco, CA)

July 2020 – Doctor On Demand secured $75 million in Series D financing led by General Atlantic with participation from existing investors.

Doctor on Demand is a virtual care platform that enables access to board-certified physicians for various medical and mental health conditions through employer, payor, and direct-to-consumer channels.

 

Physician Housecalls (Chickasha, OK)

April 2020Council Capital invested in Physician Housecalls LLC.

Physician Housecalls provides primary care services via telemedicine and home visitation to the geriatric population.

 

Healthjoy (Chicago, IL)

February 2020Health Velocity Capital was the lead investor in a $30 million Series C funding round for HealthJoy. Other participating investors included U.S. Venture Partners, Chicago Ventures, and Epic Ventures.

Healthjoy offers an employee healthcare navigation platform that provides digital, chat-based, and telephonic advocacy services through a unified benefits wallet; free, capitated telehealth services; and concierges that facilitate services such as helping to find an in-network provider, making an appointment, and providing cost estimates; drug review services to find lower cost alternatives, drug discount coupons, and lower cost pharmacies; and medical bill review and negotiations.

 

TapestryHealth (Stratfod, CT)

February 2020 – TapestryCare announced the completion of a Series A investment round led by Sopris Capital.

TapestryHealth is a multi-specialty physician practice providing both on-site practitioners and 24/7 coverage enabled by telemedicine, for patients who reside in skilled nursing facilities.

 

Access Physicians (Dallas, TX)

November 2019 – Access Physicians secured $9.3 million in a Series A round from Health Enterprise Partners (HEP III Fund).

Access Physicians is a multispecialty physician group committed to clinical excellence through telemedicine.

 

Maple (Toronto, Ontario, Canada)

September 2019Acton Capital Partners invested in Maple.

Maple’s telemedicine service allows patients even in the most remote areas, to see a licensed doctor within minutes via smartphone, tablet or computer.

 

Health Recovery Solutions (Hoboken, NJ)

September 2019 – Health Recovery Solutions closed a $10 Million growth investment led by Edison Partners.

Health Recovery Solutions supplies leading health systems with advanced remote monitoring platform and technology-enabled management services focused on changing patient behavior to reduce readmissions and improve clinical outcomes. HRS’ disease-specific engagement kits are customized with educational video, care plans, medication reminders while integrated with Bluetooth peripherals to engage clients. For clinicians, HRS’ software allows for the management of high-risk clients and provides seamless communication with them through video chat, wound imaging, and text messaging. For family members and caregivers, HRS’ software gives them the ability to be fully involved in their family member’s care and well-being.

 

Forefront Telecare (Novato, CA)

January 2019 – Forefront Telecare, Inc. closed a Series A Preferred growth equity funding, led by Spring Lake Equity Partners.

April 2019 – Boston Millennia Partners IV announced its investment in Forefront Telecare as part of a $15 million growth equity round.

Forefront Telecare provides behavioral health services via its HIPAA-compliant telehealth platform which incorporates software, hardware, and comprehensive service protocols.

 

PursueCare (Middletown, CT)

February 2019 – PursueCare raised an undisclosed amount of funding, led by WRD Capital and Starboard Capital Partners.

PursueCare is a technology-enabled healthcare Managed Services Organization, leveraging existing telehealth delivery modes of care, a network of certified addiction counselors, and provider of proven specialty pharmacy services to better address the opioid crisis. The Company provides teletherapy counseling services and federally sanctioned Medication-Assisted-Treatment by enabling patients to access psychologists, clinical social workers and substance abuse counselors for on-demand and scheduled care online.

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